Divly
About the Company
Divly was founded by Carl Gärdsell and a technical co-founder to address the complexities of calculating taxes on cryptocurrency transactions. The company provides a solution that integrates with over 100 wallets and exchanges, making it easier for users to report their cryptocurrency taxes accurately. While the business initially focused on Sweden, it has expanded into other countries, offering localized tax reports.
The company’s growth has been supported by a small but dedicated team. As a startup, Divly navigated the challenges of a competitive market by leveraging its expertise in financial services and cryptocurrency. Their approach emphasizes a deep understanding of tax regulations and the ability to scale across different jurisdictions.
Idea Behind Company
Carl's journey to founding Divly was deeply personal, influenced by a life-changing health scare. After recovering from a tumor, he left his finance job and ventured into the startup space. His involvement in the crypto scene led him to experience the challenges of declaring cryptocurrency taxes firsthand, sparking the idea for Divly.
Recognizing that existing solutions were heavily focused on the U.S., Carl saw an opportunity to create a more versatile product that catered to the unique tax laws of different countries. His previous experience in the financial sector gave him the confidence to tackle this complex problem, and with a technical co-founder, he set out to build a solution that would make tax reporting easier for cryptocurrency users worldwide.
Creating the Company
The creation of Divly began with extensive market research. Carl and his co-founder studied existing tax solutions and identified gaps that they could address. They quickly developed a minimum viable product (MVP) in just two months, aiming to release it in time for the Swedish tax season. The MVP allowed users to import transaction histories from various exchanges, automating the tax calculation process.
The early version of Divly was built using Python and the Django framework, with Carl handling the website’s frontend. They worked closely with users, gathering transaction history files to improve the platform’s integrations. This collaborative approach helped them refine the product and ensure it met the needs of their customers.
Launching the Business
Divly launched just in time for the Swedish tax season, gaining traction through targeted content and strategic partnerships. The team created a detailed cryptocurrency tax guide that ranked well on Google, driving traffic to their website. They also partnered with Safello, a major cryptocurrency exchange in Sweden, which boosted their visibility.
In addition to content marketing, Divly explored other growth strategies, including affiliate programs and social media advertising. While their ads on Facebook and Instagram generated clicks, they found that content and partnerships were more effective in converting users. This insight led them to focus on refining their content strategy and exploring new ways to expand their reach.
Earnings
As a seasonal business, Divly's revenue varies throughout the year, with most income generated during tax season. In its first year, the company earned $50,000, with $8,000 in monthly revenue. While the company is currently burning capital to fund its growth, it aims to reach break-even within the next 18 to 24 months.
Looking ahead, Divly plans to expand into new markets, particularly in Europe and Asia, while continuing to refine its product and marketing strategies. The company’s goal is to 4-10x its user base in 2023, positioning itself as a leading solution for cryptocurrency tax reporting in multiple countries.
